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tv   Mad Money  CNBC  August 16, 2018 6:00pm-7:00pm EDT

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we saw it washed out yesterday >> i'm buying nvidia on weakness and the touring launch is going to be important for them and the gross margins weakness not so buy nvidia. >> i like cisco here. u thanks for watching and see yotomorrow at my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money." welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer forget fang. this market has fallen in love with wang, as in walmart, apple,
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netflix and google and maybe amazon should look out a little. maybe time to change our acumen. the strength of the market helped today's monster move with the dow surging 396 points s&p 500 and nasdaq advancing only 4.2%. put another way, walmart with the best growth, walmart, where 100 people are shopping and shopping more than ever before has made us so optimistic that everybody compelled to buy buy buy, causing the stock of the largest retailer to go up $8 or 9.3% i don't want to get ahead of the story. if walmart's blowout earnings were the only thing we got today it wouldn't have mattered all that much.
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walmart stock would be up. facebook's stock dropped off the face of the earth. and no one knew why it was down a lot. am son seemed bloody why not swap it out for surging apple. just as we love amazon, i'm saying they're a sec no way we're ever really abandoning amazon at this pace netflix is too low to go, too low to throw away. if it were at all litterrat ive, i would have switched out netflix for microsoft. how literal, how impactful is -- you get it and google, i love it more than ever, especially since it was one of the few stocks that went down today as fang shareholders acted like guilded lovers and fled the once sainted acronym. when we have days like this we have to go back for the acronym
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dancing in the dark. you can't start without a spark. the chinese are coming, the chinese are coming to washington soon to start up low level trade talks. i threw in the words "low level" because i heard that all day any talks is better than no talks. this market craves talks and wants stability. and this morsel coupled with the president's chief economic advisor, larry kudlow that nafta and european trade talks are going well, that was the spark needed to stampede the bears sure it could have been derailed by turkey but turkey was a turkey burger, which is actually the same as a nothing burger the spark might have died out if the chinese stock market cratered again even though it was down it was more faux bearish, like a koala.
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this rally had a lot of tech from is. tech got a boost after cisco earnings i heart from this man that made me think it is just a way station on the road to if it customers all over the world are buying cisco's product both because they're flush and optimistic especially in europe and crave cisco's software solutions. remember, it was a hardware company, now a software company and will be very involved in the bloebl upgrade to 5g wireless and tech investors are desperate for that let's go to the trade talks with china. few stocks have been more punished, more just beating around the head than boeing that gets a quarter of its money from the people's public and boeing because of the cash flow the ubs evidence slab, like csi,
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notes the people are underestimating boeing's revenue stream and fixation for making a lot more money this call would have been ignored entirely except today we had visions of chinese capitulations dancing in your head if boeing goes higher you buy honeywell, caterpillar and others and the chance of an apple boycott, hence why that stock was an all day rally and the big stocks off turkey but the turkey burger gave these stocks a chance to rebound. keep track of the stock of goldman sachs here we seem to have forgotten already warren buffet bought a ton of shares. he's not a flipper, an owner and american express rally let's return to where we started, the largest retailer in
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the world, walmart, time and time again a good number and the stock flies up and then we discover there was one time gain, good health or family on the conference call. you rarely see the stock going up and going higher the more we found out and that's what happened on the stock of walmart. wasn't just that walmart delivered 4.5% same-store sales growth, the best in a decade or sam stores had a 5% comp, that's awesome. have you been to a walmart lately i'm asking you have you gone in one when i go to mine, it feels like the walmart of old, where i know i can go in and pick up things -- pick up things i didn't even need just because they were so darned cheap i expected them to be like this mccormick french's mustard i spotted in a louisiana walmart recently i wanted to buy a boat load of it my wife said, what are we going
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to do with it? i said, does it really matter? it's so cheap. she won. walmart has caught up and pretty much passing every other brick and mortar chain with astounding 40% growth hallelujah these guys have online game. i googled sam's club to find out more about it to see what i could learn. at the top of the queue when i googled i saw math that had the closest to sam's club where i was standing i expect that from amazon, not walmart. we continue to bring digital capabilities to our stores to deliver a seamless experience for our customers, however they choose to shop you know, brooks and mortar is not a liability. doug has done a phenomenal job, a few years ago he expanded to bring walmart's brig and mortar to an online asset and crush the
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stock! still on the show, he said they have their blessing. it all worked. last night i finished my monologue. i like to say monologue because that's what johnny had noting some people thought i was crazy because i said i probably was not being bullish enough last night. i kept thinking what if something good happened, what if sidelined buyers do if walmart wasn't falling off a cliff or china signaled they want to make amends what would walmart do if they reported a good quarter, what would we do? bottom line, we didn't have to imagine it we got all those positives it's jarringly bullish sure, this evening we got disappointing forecast from applied materials and at last, pore invidia, something we have been flagging could be the case on this show if we hear the chinese may give
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in and this move may last longer than the bears think, especially if we get a few more good days of wang! preston in new york, preston >> caller: hi, jim earlier this week you spoke about new auto sales being down and millennials prefer ride sharing and you throw in certainty what are your thoughts on siriusxm siri and do you think it can hold its ground with apple streaming spotify and potentially amazon in the same space? >> all those are a problem i've been a stalwart on this stock now and increased almost to triple. i've done that because like the team tells us, team zora, i'm not backing away, this is still a good subscription play and does work on used cars and used cars are in vogue.
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to jim in virginia >> caller: hello, jim, how about shares in canada goose, i bought, but it has dropped since then and they announced a secondary shareoff and recovered a little bit and dropped again without a lot of news other than its warning report to include a smaller than expected loss should i use this dip to buy some more? >> i did a lot of goose when they were reporting and said sell it before the quarter it went all the way up and then all the way back my thinking is this is a decent level to buy they were very cautious. they were a little too conservative in their forecast and that's what drove the stock down i typical it's a great long term play and what really matter. i think it's a great -- dave in illinois >> caller: i want to ask about alsm they delivered an impressive
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quarter two weeks ago. since then it's down about 15%, a bit of a laggard in the healthcare sector. we have seen this before with worries about pet expiration and those sorts of things and nothing seems to be behind this most recent decline. >> that's not fair baker brothers, one of my absolute favorite biotech investors i followed for years when i did the street.com. they filed to sell a lot of its stock and makes me less sanguine and less likely to want to bottom this in alexia. you heard it here first, wang is an acronym on your radar screen the w is walmart and this time, a is apple not just the frenchs from walmart, a signal from china that we can finally make amends helped spur the performance. with so many unknowns in this
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market is it time to plug into a utility? i'm sitting with the ceo to find out what's happened. and a company behind 150 brands and products, including tindr and dictionary jump.com. and maybe the keys to finding the best investments in this stock market i'll explain stick with cramer. don't miss a second of "mad money," follow on jim cramer on twitter. have a question, tweet cramer, #mad tweets. send jim and e-mail to cbs.com, or give us a call at 1-800-743-cnbc miss something, head to "mad mone money"@cbs.com
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thanks, janet. it's welcomemy happy place. store. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. earlier this week, we checked in with one of our favorite technicians, carly garner, who argued technicians are way too negative on treasure by bonds and says we should be
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poised for trading on bond prices and it could be a huge high earning stocks. ever since bond yields started cooling off early this summer, ap has been able to mount a nice rally and i wouldn't be surprised if they have more room to run they have major power generation assets and lately embracing renewable. when ap reported three weeks ago the company reported a significant top and bottom line. this could be a big winner the chairman and ceo of aep. welcome back to "mad money"! >> great to be with you, jim >> you're still going straightforward, you think the 5 to 7% earnings growth is in the cards. how can you be so confident? >> absolutely. the investment plan our company has will continueto grow we're at 5-7% growth rate.
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our capital forecast this last quarter we extended the capital forecast to 20-21 and showing we were intent on the 5-7% growth rate the ability to invest in transmission and changing energy environment the way we provide our service is a positive aspect of our business. >> we spoke the last couple of times we talked about wind catcher, how that could be helpful growing numbers. what the heck happened here? it's a pretty inventive way to make money >> absolutely. we felt like it was a great project. on the outset we said our commissions have to approve these projects, certainly, a unique project and large investment in western oklahoma we were disappointed in the outcome. at the same time, we have a firm foundation with our company with
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the capital investments we can make regardless of wind catcher and now we will focus on smaller investments of renewables to replace that it's one of those aspects of the business we will have projects and opportunities and some will go and some won't go and all built around a firm foundation to be selective about those projects we move forward with. >> were you able to reconcile the whole time to reduce your carb carbon footprint since i've met you with wind catcher? >> wind catcher is how we were getting ahead of our resource plans. we filed resource plans in the 11 jurisdictions we serve, state jurisdictions. certainly, there's small capacities you built and so forth in those plans, this is a unique opportunity to get out ahead in many of those aspects that being said the risk parameters around this project
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became such we had to really quantify those risks it was great for customers but we have to make sure it's great for the investors. we go through the project with the approvals and the project doesn't move forward and we continue with the resource plans of smaller projects to fill the gap. >> talk to me about your area. where's the strongest markets and where's the big growth >> certainly, we have big markets in texas and in the midwest. certainly, the states we serve in the south central part of the u.s., along with the midwest states, the dmerg economy is substantial. we're growing higher than the gdp of the country our income growth continues to be there job creation continues to be there, residential and commercial and industrial in particular continues to improve. the fundamentals of the area we
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serve were very positive and continue to be so. >> i am paying attention to southern i can't ask you to opine on that but i can ask you to opine on nuclear power. we just saw another bump up where the nuclear power enterprise someone was trying to do are we ever going to build another nuclear power plant? it seems like you can bankrupt anybody. >> you have to think about today's environment where technology is going, certainly where natural gas prices are it's a significant challenge to build a large central facility and take on the risk hats off to southern to building that process relative to nuclear. at the same time, when we look at it we have the largest transmission system and multiple projects, certainly projects emerging on the distribution side relative to distributive
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resources and the infrastructure associated to it the small projects add up to much less risk to investors. we look at the future in terms of investment with distributive resources where technology is going, certainly from a transmission standpoint, those are investments we can make that minimize risks not only to our customers but to our shareholders as well. >> do you think it will ever be impactful when we, let's say cars that are incredibly popular in the country >> absolutely. we see it as a sales growth in the industry when you look at electric vehicles, we see charging stations to be build in the ohio area, that's a major part on our part to make sure the electricity is there and we sell
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electricity to electric vehicles and avenue for transportation to make sure it is accessible to everyone without having to go to a gas station for example. >> i'm glad the cancellation didn't make you skip a beat because people want it and sounds like a solid situation. i want to thank nick akins, the chairman of american electric power and my favorite to buy
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cancellation just because a stock has been rallying like crazy doesn't mean it's expensive. some companies are so underappreciated they could double or triple and still actually be cheap. take aic interactive corp. this is a stock that just did something incredible they ran up dramatically in the week to its earnings report f m
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it was so strong it shot up the next day normally when a stock goes up in a quarter it sells off even with cramer results this is not a normal company and not a normal quarter for those that don't know iac is probably the most ubiquitous company consumers have never heard of they were put together by the legendary barry dillard, former ceo and current chairman they own ask.com, dictionary.com, daily beast, among many other brands. they're the parent company of two major subsidiaries angie's list and ask, and vimeo and others i thought the stock was criminally undervalued i sees an a long history of ing
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baiting great ideas and spinning them off as independent companies. they did it with home shopping network and ticketmaster and others another stock we adore on live money. they find brands with a lot of potential and nurture them and spin them out to harvest the profit in 2016, match group ipl, although they still own more than 50% of the business they get a better valuation when they trade independently it's so far been a huge home run. i thought it was a match company, like diamonds but since become very enlightened. that's when i told you the stock with the parent company had a lot more room to run since then, iac has given you a 5% gain thanks in part to the rally just last week iac is still after that rally, way too cheap on what we call the satp, or sum of the parts.
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if you feel you missed it, don't worry, in the words of bachmann turner overdrive, you ain't seen nothing yet. how can i be so confident on this i can do basic arithmetic. not every stock is that way. but iac, it's like they're trying to unite all the gangs in new york city and asks, can you count? look, if you can count you can see the value composition here iac owns 87% of angie's home services and they own 81% of match group, two publicly traded companies set by buyers and sellers. they're fair and this is what they're worth. based where they're currently trading their position in mda is $8.4 billion and in angie, $8.5
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billion and add them up they come to $18.5 billion yet they have an authorization of $15.4 billion. they're trade like the company is less than zero. huh? more like negative three billion. it's lunacy. not like a big secret. iac, joey levin did the math himself. he's practically beating people over the head with the fact this stock is too cheap that's why iac has been so aggressive buying back its own shares this is the beauty of their investor model when they have an incredible brand investors wanted to own they can spin it off for an independent valuation. match group is a truly amazing asset, this company might as well have an monopoly on online romance although romance is a bit of a misleading word in the latest quarter it grew
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its subscriber base by 27% to 77 million with tindr throwing fire to 81% that's how match's revenue can rise by 36% turning into a monster 165% in the companies earnings per share wow. that was my stomach growling as for angie home services, this incarnation was created last year when iac merged the home advisor business with the old angie list it was a brilliant combination one helps homeowners find contractors. in the latest quarter angie home services beat on every metric that matters, requests up 30% and lots of jobs that previously went unmatched are now getting done if iac just owned match and angie, but they own other businesses they're getting zero
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credit for right now not all these businesses are necessarily on fire. they're all worth something. the application division a bunch of web browser extension and mobile apps. not great, heavily geared towards a desktop based world, shifting mobile. their publishing business is roaring including dot dash, daily beast, publishing grew at a 76% clip last quarter, suddenly publishing is profitable thanks to the strength at dot dash which transformed itself from the old about.com that transformed itself, balance of personal finance. life wire for tech, trip savvy for travel how much should publishing be worth? it should be a billion dollars business finally, the video division. a huge video sharing site. here's how it was explained. i will quote
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we're often asked how vimeo can compete aagainst giants like netflix and apple, it doesn't. we don't make our own shows or content. we don't selling as or screens we sell subscription software to those behind the camera, enthusiasts, businesses to help them make videos digitally end quote. it is a subscription economy if we only maintain a heart beat to wildly understate our ambition the rest, the rising tide of video relevance ought to deliver healthy growth here for at least a decade. the stock has granted gone up incredibly because business is incredible i see it ridiculously cheap, even as it pulls back a quick 5% against highs this week thanks to the wall street co-founders of tindr they want ten million in damages
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saying they were manipulated i call the whole thing sour grapes and inclined to agree with them. despite its monster move over the past couple of weeks, i think iac remains a buy. the last time it pulled back was over the spring when facebook announced it was getting into the online buying opportunity. that was a buying opportunity. they might sell it to russia, with love of course. i think this latest dip is another buying opportunity when ic comes in, stop googling and start buying iac. greg in utah greg >> caller: hey, jim, bill boo-ya from alpine, utah. >> good. great to have you on the show. what's going on? >> caller: wanted to say as a former educator and autism in the family, i'm grateful for the
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philanthropy you and your group do and give you a thumbs up and calling about ebay today >> first of all, you're very kind i appreciate it. ebay is tough. they don't have the momentum they once had. i want to be very careful with the stock. i cannot recommend it here i vastly prefer the other part that got spun out, paypal. i think that stock still works although they did trimming recently telling club members it has gotten very high even considering its move higher, i still think iac is a buy. it could be a good time to swipe right on this one. more ahead what elizabeth warren and ceos have in common does your portfolio have what it takes to survive any market? i'll be the judge in tonight's edition of the "lightning round" stick with cramer.
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on a day like today where the market is roaring it's easy to get caught up in the excitement that's more of a reason than ever to make yourself diversify. it is the only way to maximize your returns and risk. that's what we do on "mad money" and why we play diversify. you tell me your top five holdings and i tell you if you're diversified enough. first, a tweet from j prez 24 who says, action, microsoft, visa, smith, intel, am i diversified. i'm struggling whether we should have china as a separate category entirely.
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these are not going to trade together we will get rid of balsom. we don't want chinese products in there right now and put united we're recommending can't have microsoft and intel we will take intel out this is too much tech. i want to put in -- let's put in -- how about walmart? how about walmart after today? i think that can stay up there smith, industrial, visa. industrial retail, healthcare and tech, and then these are different. that's what i would do you are underdiversified lou in pennsylvania. >> caller: hey, jim. i'm a value investor looking to maximize my dividend income. my five stocks are brookfield infrastructure partners. vrp, iron mountain, pfizer, royal dutch shell and ups.
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am i diversified >> i really like this portfolio. i love the income. i have to admit i love the income document management. real estate investment, you do not trade together i like this brookfield, a solution for companies trying to figure out what to do with the real estate. pfizer drug, oil and transport from u.p.s all good yielders, transport, oil, a drug company, retail and document that is terrific i like that and like the concept of using the stock market to bring in a little extra money. how about roy? >> caller: booyah. calling from port st. lucie, florida. >> i have been there love it. >> caller: i'd like to play am i diversified. >> sure. families let's play >> caller: my stocks are g.e., pfizer, apple, facebook and
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sono am i diversified >> okay. man, these guys are playing "hardball" for here. you have industrial in g.e. and upgraded we have pfizer drug company, apple, one of our favorite tex then we have two other companies, i will call sonos a tech even though it's a housing tech we will get rid of them. we will facebook down 5 today. it's -- apple is just better, let's say it's better. i will put in iac. why not? a little diversification, a diversified company that gives you diversification. i've been -- there was a great piece today on raytheon. i thought it said really good
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things i thought it would be terrific that's it? that is the end of am i diversified? >> more at the end of the break.
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it is time the "lightning round" is over, are you ready skee-daddy starting with kevin in new york, kevin. >> caller: hi. big jim, calling from upstate new york, booyah >> booyah. a 76er >> caller: i'm calling for my girlfriend, stephanie, jim >> indeed. >> caller: i'm calling about the stock, royal dutch shell >> everyone it has the oils because that means it's time to buy the oils going from 70 to 80. ron in new jersey. ron. >> caller: how are you doing, jim? >> okay. how about you? >> caller: good. i have to ask you a question i've owned landry a couple times and made a lot of money with
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them now, i see what's going on in the market with the tech, okay >> caller: right i see the lam is bouncing around and around i'm not too sure >> it is a fabulous company. take what i'm says with a grain of salt. they are caught with what their customers want i think the same thing with lamb, a glitch in time and i don't want to recommend lamb right now. to tom in texas. >> caller: hey, jim, greetings in austin home of your super bowl quarterback >> yes indeed. westlake you went to westlake high? >> caller: yes >> great people. what's up? >> caller: here's my question. what is your opinion on new start energy >> if you really want an 80% yield you have to take a little more risk than i would like.
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i understand why you would people feel that group has come back but not my cup of tea jerry. >> caller: how are you >> not bad >> caller: go birds. shoutout to my family and friends. >> no problem there. what's up? >> caller: what do you think about ebix buy, hold or sell? >> i like insurance. to tim >> caller: i'm calling about fox factory. >> off-road vehicles has always been a quandary to me. it has been so strong in the face of a lot of headwinds i have to figure out what the heck is going on. i also have to look at carvana how did they get so strong
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to jordan in minnesota >> caller: booyah. thanks for your hard work. i want to take some stock off the table and want to know if it's a buy, hold, sell on nutanix. >> i like them they're very smart, enterprise cloud. i will say something positive about them, i will go double positive about bmware i think is excellent. to lee >> caller: hey, jim. booyah from michigan i have a question. i love your opinion about sarepta. >> it is a good stock, up very very big um mun diseases. one of the things we like is this rna concept, the blueprint we talked about, i think the stock is good. to bruce in florida. bruce. >> caller: how are you, jim? booyah from palm beach
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>> lucky man >> caller: long time listener and first time caller. had a chance to pick up dnr danbury research >> back in the bad oil days, denbury was do not resuscitate i think so many are down with good yields. we had some earlier and i would recommend something like that. not a single digit >> caller: booyah, professor cramer, how are you doing? >> oh, i love getting tenure how are you? >> caller: good. i listen to your podcast every single night while i'm working out. i've lost about 20 pounds doing runs listening to your voice >> i want you to make 20 british pounds and then some if we were in london. >> caller: my question is about sony is that a pretty good run? >> it's still undervalued. a good situation
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we underestimate the strength in the japanese market so sony is okay with me i want to go to bob in my home state of pennsylvania. bob. >> caller: good evening. i was interested in united rentals due to its earnings. >> i don't understand why you or i cannot lift them they have a much better infrastructure than most stocks. i think they're a winner and you have to be patient and buy to wes in utah wes! >> caller: hey, thank you, jim, for taking my call >> of course >> my quick question is, i have four or five stocks $20,000 each and thinking we ought to sell marathon petroleum company the highest in years >> you're not selling marathon you're not selling marathon. you're buying more marathon. that's how i feel. ladies and gentlemen, that c concludes the "lightning round"!
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you want to stir up a hornets nest, bring elizabeth warren on to give large companies, think employees, more of a voice in the corporate board room >> it's not anti-business.
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this is saying to businesses, hey, what you need is you need a little more diversified board and you need ceos and top executives who are in sentvised not just to think in the next quarter, but to think longer about how this business works. that's going to be good for everybody. >> i know warren's populous proposal doesn't have much of a chance of actually passing and some say it should be dismisseded out of hand as stealth socialism. i think that's nonsense. it's known to have gravitas. who hasn't said ceo pay has gotten out of control compared to what workers made 30 years ago the gap between ceo awards and stock options and compensation was much more narrow the medium wage has been flat for decades. it's not sustainable i get what warren wants to accomplish but i would come at it in a whole different path
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i'm not sold requiring corporate charters is the best way togo. some of the companies i follow have taken a page from her playbook and recognize sharing the wealth is smart business, people do bet, give you better work when they're respected and empowered and paid well. how do i know this i've been schooled by three tremendous ceos about the need to offer employees higher wage, more benefits and a clear alignment with the success of the institution. these three ceos generated incredible returns for their investors. capitalism is not just about ripping off the little guy as i mentioned to senator warren, doing well and good can go hand-in-hand. who are these visionary ceos, talking about the ceo from salesforce.com, talking about jim senegal from cost sco and moved up and patrick doyle who
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just stepped down at domino's pizza. the stock rallied from 12 to $282 only mark beniak is still with the current enterprise but they deserve credit for their share at the same time, senegal paid dividends. this is where i disagree with elizabeth warren it doesn't have to be zero sum i think she makes it sound like it is. you can pay your employees well and still make a fortune i'd say probably the most proserve rouse about it more than any other ceo in the country. senegal explain dollars to me the difference between costco and other retailer, costco gives its workers better pay and more benefits how does that help simple less turnover. training new employees is expensive and customers wanted to see the same people in the
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store, not endless neophytes who don't know where anything is senegal realized they saved money without replacing replayersments i think warmts did better by paying them more than they used to without defecting to the competition. domino's, when i asked he greatest legacy was i thought he would say dijization, no, he said that a large percentage of the franchises are owned by former hourly workers. that should be music to elizabeth warren's ears. the franchise owners know what they're doing because they used to work there. as in twitter, no doubt, she is on to something, ironically enough how to make the best returns in the stock market. for the companies that take care of their employees if you find them, guess what you'll find some fabulous
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stocks
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you know the theory the other day about how housing is weak, not a lot of turnover and that hurt the stock of home depot. after listening to walmart today i think we should circle back to home depot i think the market made a premature judgment i think they're doing really well as for walmart, i don't think they're done going up. people can put a 20, 22 multiple on it for next year. that's how fast it's growing that could take the stock, blow up to $110 don't sell that yet if you own it i continue to believe this is part of a progress of money not going to your home, not going to your car, but going to stores. that's where all the action is congratulations, doug mcmillan, for sticking his neck out and really delivering. there's always a bull market somewhere, i promise to find it just for you right here on "mad money. i'm jim cramer and i will see you tomorrow
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is max. i'm the founder and creator of lumio. today i'm seeking $250,000

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